Big Carbon Buyer emerges

Wednesday 13 Oct 2021

Unknown player makes big move in carbon market - A single buyer bought 37% of all the New Zealand Units on offer in the last carbon auction in September snapping up more than 4.3 million NZUs for $234 million. The bidder’s identity is not known and is protected under confidentiality clauses in emissions trading scheme (ETS) law.

A Ministry for the Environment analysis of the Sept 1 auction outlines some of the broad numbers in the third event of its type. It was notable because it resulted in the $50 ceiling price being crossed and released 7m NZUs in the cost containment reserve (CCR), which meant in all 11.75m were sold.

The clearing price of $53.85 meant the government made $632.7m.

The interim auction monitor report said: “For the first time and as anticipated by the market, the cost containment reserve was triggered. Possibly less expected was that the entire CCR volume was purchased with a consequent increase in the clearance price above the $50 trigger price.”

The report said the ‘interim clearing price’ – which is the price at which the full auction volume would have been sold in the absence of additional volume – was $57.


Source: BusinessDesk

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